CTI Engineering Co., Ltd. (9621) AI Stock Analysis

• Market Cap: ¥93.67B
• Dividend Yield: 1.25%
• Average Volume (3M): 38.41K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.60
• Revenue Growth: 2.61%
• EPS Growth: -13.38%
• Country: JP
• Employees: 3,966
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 19.09
• Shares Outstanding: 28,318,172
• 10 Day Avg. Volume: 51,290
• 30 Day Avg. Volume: 38,413
• PEG Ratio: -0.98
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 43.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,451.00 ▲(16.12% Upside)

CTI Engineering Co., Ltd. is well-positioned in the engineering and construction industry with a strong financial foundation and reasonable valuation. However, mixed technical indicators and cash flow volatility present some risks. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial health and expansion.

Balance Sheet Strength

Low leverage and a strong equity base provide financial stability and flexibility, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Operational Efficiency

Stable operational efficiency reflects effective cost management and resource utilization, contributing to sustained profitability and competitive advantage.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin suggests challenges in cost control or pricing power, potentially impacting future profitability if not addressed.

Cash Flow Volatility

Volatile cash flow can hinder strategic investments and operational flexibility, posing risks to long-term financial planning and stability.

Free Cash Flow Growth Challenges

Inconsistent free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, affecting future growth prospects.

CTI Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

CTI Engineering Co., Ltd. operates as a consulting engineering company in Japan and internationally. It offers professional consulting services related to civil engineering and construction works, including planning, research, scheduling, design, and project management services. The company offers its services in the areas of water and land sector, including river and coast management, land erosion disaster prevention works, dam management, water supply and sewerage management, harbors and oceans, agricultural water utilization facilities, forestry, and fishing facilities; and transport and urban sector that consists of roads, urban management and architecture, transportation, PFI and PPP, bridges, and railways. It also provides its services in the areas of environmental and social sector comprising information technology and disaster prevention, geology and geotechnical properties, environmental management and energy, project management, and resource circulation management. The company was formerly known as Kensetsu Gijyutsu Co., Ltd. and changed its name to CTI Engineering Co., Ltd. in February 1964. CTI Engineering Co., Ltd. was founded in 1945 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CTI Engineering generates revenue primarily through its civil engineering and construction services. The company earns money by engaging in contracts for public and private infrastructure projects, where it charges fees based on the scope and complexity of the work. Key revenue streams include project management fees, consulting services, and construction contracts. Additionally, CTI Engineering may form strategic partnerships with government agencies and other firms to secure large-scale projects, which contribute significantly to its earnings. The company's focus on sustainable development and technological innovation also positions it to benefit from emerging trends in the infrastructure sector.

CTI Engineering Co., Ltd. Financial Statement Overview

Summary

CTI Engineering Co., Ltd. demonstrates a solid financial position with consistent revenue growth and strong equity standing. The company's low leverage and efficient operations are significant strengths, though the slight decline in net profit margin and volatility in cash flow warrant attention.

Income Statement

CTI Engineering Co., Ltd. shows strong and consistent revenue growth over recent years, with a compound annual growth rate in revenue of around 8.8% from 2019 to 2024. The gross profit margin has improved from 27.7% in 2019 to 29.1% in 2024, indicating effective cost management and pricing strategies. However, the net profit margin slightly decreased from 8.0% in 2023 to 6.9% in 2024, reflecting challenges in maintaining profitability. Despite this, EBIT and EBITDA margins remain stable, suggesting robust operational efficiency.

Balance Sheet

The company's balance sheet is strong, characterized by a debt-to-equity ratio of 0.07 in 2024, which indicates low financial leverage and a conservative capital structure. The equity ratio is high at 70.1%, reflecting a strong equity base relative to total assets. Return on equity is solid at 11.0%, highlighting the company's ability to generate profit from shareholders' investments. The consistent increase in stockholders' equity demonstrates financial stability and growth potential.

Cash Flow

While CTI Engineering's operating cash flow has shown volatility, it remains positive, highlighting operational cash generation capability. In 2024, the free cash flow to net income ratio is 0.23, which is an improvement from negative values in previous years, indicating enhanced cash management. However, the free cash flow growth rate has been inconsistent, suggesting potential challenges in capital expenditures and cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.73B	97.68B	93.06B	83.48B	74.41B	65.19B
Gross Profit	28.40B	28.43B	27.06B	23.42B	20.73B	18.23B
EBITDA	10.49B	11.51B	11.90B	9.82B	8.29B	6.59B
Net Income	5.64B	6.75B	7.53B	5.87B	4.47B	3.65B
Balance Sheet
Total Assets	87.92B	87.69B	79.91B	73.30B	71.88B	63.98B
Cash, Cash Equivalents and Short-Term Investments	29.20B	15.52B	19.65B	22.59B	20.53B	16.68B
Total Debt	539.00M	4.03B	2.88B	2.89B	2.48B	2.35B
Total Liabilities	24.73B	26.02B	24.82B	25.58B	33.06B	29.97B
Stockholders Equity	62.98B	61.45B	54.89B	47.52B	38.67B	33.84B
Cash Flow
Free Cash Flow	0.00	1.56B	-96.00M	3.14B	4.78B	8.05B
Operating Cash Flow	0.00	2.41B	874.00M	3.80B	5.34B	8.69B
Investing Cash Flow	0.00	-4.80B	-912.00M	-752.00M	-671.00M	-779.00M
Financing Cash Flow	0.00	-2.11B	-3.29B	-1.29B	-1.13B	-1.19B

CTI Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2972.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9621, the sentiment is Positive. The current price of 2972 is below the 20-day moving average (MA) of 3040.30, below the 50-day MA of 2973.72, and above the 200-day MA of 2806.02, indicating a bullish trend. The MACD of 39.48 indicates Negative momentum. The RSI at 73.46 is Negative, neither overbought nor oversold. The STOCH value of 95.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9621.

CTI Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1870	79 Outperform	¥105.24B	9.74	―	3.63%	35.73%	62.37%
1871	75 Outperform	¥154.44B	16.83	―	3.13%	5.39%	33.02%
9621	73 Outperform	¥93.67B	15.48	―	1.25%	2.61%	-13.38%
1882	70 Outperform	¥93.77B	25.54	―	8.02%	2.51%	4.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥74.04B	22.07	―	3.84%	-8.79%	―
1888	59 Neutral	¥67.46B	14.63	―	2.84%	15.45%	43.95%